Victoria (VCP) AI Stock Analysis

• Market Cap: £68.58M
• Dividend Yield: N/A
• Average Volume (3M): 235.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -11.73%
• EPS Growth: -62.35%
• Country: UK
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -2.27
• Shares Outstanding: 114,294,014
• 10 Day Avg. Volume: 326,470
• 30 Day Avg. Volume: 235,956
• PEG Ratio: <0.01
• Price to Book (P/B): -0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £170.00
• Price Target Upside: 160.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ―

Victoria PLC's stock is currently underperforming due to significant financial and operational challenges, including declining revenues and high leverage. The technical analysis indicates a bearish trend with the potential for oversold recovery, while the valuation reflects its negative profitability. The recent appointment of a new CFO is a positive step, but substantial improvements in financial health and operational efficiency are necessary for a meaningful turnaround.

Victoria Business Overview & Revenue Model

Company Description

Victoria PLC, together with its subsidiaries, designs, manufactures, and distributes flooring products primarily in the United Kingdom, Spain, Italy, the Netherlands, Belgium, Turkey, the United States, and Australia. The company operates through four segments: UK & Europe Soft Flooring, UK & Europe Ceramic Tiles, Australia, and North America. It offers a range of wool and synthetic broadloom carpets, ceramic and porcelain tiles, flooring underlays, luxury vinyl tiles (LVT), hardwood flooring products, artificial grass, carpet tiles, and flooring accessories, as well as markets and distributes LVT and hardwood flooring products. The company also offers logistics services. It provides its products under various brands. The company was founded in 1895 and is headquartered in Kidderminster, the United Kingdom.

How the Company Makes Money

Victoria (VCP) generates revenue primarily through the sale of its flooring products. The company's key revenue streams include direct sales to retailers, wholesalers, and end consumers, as well as partnerships with commercial builders and developers. Victoria's strategic focus on innovation and sustainability enhances its product offerings, allowing the company to maintain competitive pricing and customer loyalty. Additionally, Victoria leverages its global distribution network to expand market reach, further contributing to its earnings.

Victoria Financial Statement Overview

Summary

Victoria faces significant financial challenges, evidenced by declining revenues, negative profitability, and high leverage. The balance sheet reflects financial instability with negative equity, while cash flow issues highlight potential liquidity constraints. These factors collectively suggest a need for strategic improvements to stabilize the financial position.

Income Statement

The company's revenue has declined in the recent year, with a negative net income indicating a lack of profitability. The gross profit margin is moderate, but the negative EBIT margin and net profit margin suggest operational inefficiencies. The revenue growth rate has been inconsistent, with recent declines posing a risk to financial stability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. Stockholders' equity is negative, reflecting financial instability and potential liquidity issues. The equity ratio is also unfavorable, highlighting concerns about the company's ability to cover its obligations with its assets.

Cash Flow

Cash flow analysis reveals a negative free cash flow, which poses a challenge for sustaining operations without external financing. The operating cash flow to net income ratio is not applicable due to negative net income, further emphasizing cash flow constraints.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.19B	1.27B	1.48B	1.02B	662.30M	621.50M
	Gross Profit
345.50M	390.80M	402.30M	324.60M	208.10M	201.40M
	EBIT
-225.60M	-51.80M	72.80M	67.90M	40.80M	40.00M
	EBITDA
-111.70M	66.90M	91.90M	142.60M	124.60M	37.50M
	Net Income Common Stockholders
-258.10M	-108.00M	-91.80M	-12.40M	2.80M	-71.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.80M	94.80M	93.30M	273.60M	348.80M	176.80M
	Total Assets
1.63B	1.63B	1.87B	1.64B	1.35B	1.20B
	Total Debt
934.80M	934.80M	1.20B	984.70M	834.80M	625.30M
	Net Debt
840.00M	840.00M	1.11B	711.10M	486.00M	448.50M
	Total Liabilities
1.65B	1.65B	1.75B	1.44B	1.15B	959.30M
	Stockholders Equity
-22.20M	-22.20M	119.00M	202.60M	208.20M	240.60M
Cash Flow		Free Cash Flow
-32.10M	-7.30M	-10.50M	14.80M	29.00M	31.50M
	Operating Cash Flow
32.50M	55.20M	89.10M	68.10M	57.50M	65.30M
	Investing Cash Flow
-3.70M	-38.10M	-218.60M	-188.60M	-45.70M	-53.20M
	Financing Cash Flow
-36.50M	-17.90M	-41.10M	30.40M	163.00M	100.00M

Victoria Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VCP, the sentiment is Negative. The current price of 65.2 is below the 20-day moving average (MA) of 66.99, below the 50-day MA of 76.84, and below the 200-day MA of 96.69, indicating a bearish trend. The MACD of -5.81 indicates Positive momentum. The RSI at 25.41 is Positive, neither overbought nor oversold. The STOCH value of 28.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VCP.

Victoria Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFX	73 Outperform	£47.15M	8.62	18.68%	0.71%	2.96%	9.77%
SDG	68 Neutral	£32.43M	6.71	-19.63%	7.22%	-7.45%	-51.68%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
HEAD	51 Neutral	£76.75M	―	-12.15%	6.45%	-9.66%	-425.03%
VCP	41 Neutral	£68.58M	―	486.49%	―	-11.73%	-62.35%
CHH		£76.43M	12.01	10.50%	5.47%	―	―
LIKE		£57.44M	73.44	1.96%	1.59%	―	―

Victoria Corporate Events

Victoria PLC Strengthens Leadership with New CFO Appointment

Victoria PLC has appointed Alec Pratt as a director and Chief Financial Officer Designate, effective immediately. Additionally, the company has granted him options over 1,666,666 ordinary shares under its 2022 Long Term Incentive Plan, with vesting scheduled over ten years. This strategic move is expected to strengthen Victoria’s leadership team and support its growth strategy, potentially enhancing shareholder value through improved financial management and execution of its business objectives.

Spark’s Take on GB:VCP Stock

According to Spark, TipRanks’ AI Analyst, GB:VCP is a Underperform.

Victoria PLC is currently facing significant financial challenges, with declining revenues, high debt levels, and cash flow constraints. The technical analysis suggests a bearish trend, though potential oversold conditions might offer some room for recovery. Valuation metrics indicate a lack of profitability and no dividend yield, reducing immediate investor appeal. Recent management changes could provide strategic benefits, but financial and operational improvements are crucial for a turnaround.

To see Spark’s full report on GB:VCP stock, click here.

Victoria PLC Issues Shares Under Long-Term Incentive Plan

Victoria PLC has announced the issuance of 289,264 ordinary shares to its employees as part of its long-term incentive plans. This move does not involve any company directors or managerial staff. The company transferred these shares from its treasury, leaving it with 10,881,391 shares in treasury and 114,583,276 shares in issue, excluding treasury shares. This issuance is part of Victoria’s strategy to enhance shareholder value by increasing earnings and cash flow per share.

Victoria PLC Announces CFO Transition with Appointment of Alec Pratt

Victoria PLC has announced the appointment of Alec Pratt as the new Chief Financial Officer (CFO) Designate, succeeding Brian Morgan in June. Alec Pratt, who brings extensive experience from his previous roles at Deutsche Bank and J.P. Morgan, is expected to enhance Victoria’s management team and contribute significantly to the company’s continued growth and operational efficiency. This transition is part of Victoria’s broader strategy to strengthen its leadership and maintain its position as a leading player in the international flooring industry.

Victoria PLC Announces New CFO Appointment

Victoria PLC has announced the appointment of Alec Pratt as the new Chief Financial Officer, succeeding Brian Morgan in June. Alec Pratt brings extensive experience from Deutsche Bank and other financial institutions, which is expected to bolster Victoria’s growth and operational efficiency. The transition is part of Victoria’s strategic plan to enhance its management team and continue its trajectory of growth in the international flooring market.

Victoria PLC Announces Change in Major Shareholdings

Victoria PLC, a UK-based company, has announced a change in major shareholdings. The notification, submitted on February 4, 2025, reveals that Saqib Karim has increased his voting rights in the company to 7.00726911%, up from a previous position of 6.12770335%. This adjustment in shareholding reflects a strategic investment decision by Karim, potentially impacting the company’s governance and signaling confidence in its future prospects.